ESR Group Limited Annual Report 2023 189 Notes to the Consolidated Financial Statements 31 December 2023 18. INVESTMENT PROPERTIES (continued) The valuation of investment properties categorised within Level 2 of the fair value hierarchy is based on comparable market transactions for which the Group considers sales of similar properties that have been transacted in the open market. Below is a summary of the valuation techniques used and the key unobservable inputs to the valuation of investment properties categorised within Level 3 of the fair value hierarchy: Investment property details Valuation technique Key unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Logistics Income capitalisation Capitalisation rate: The estimated fair value varies inversely against capitalisation rate Facility, Data Centres, Land China: 5.40% to 7.00% (2022: 5.40% to 6.85%) Japan: 3.30% to 4.80% (2022: 3.80% to 5.10%) Hong Kong: N/A (2022: 3.00%) India: N/A (2022: 7.75%) Discounted cash flows Discount rate: The estimated fair value varies inversely against the discount rate China: 7.25% to 9.00% (2022: 7.25% to 9.00%) Japan: 3.10% to 4.70% (2022: 3.80% to 5.00%) Hong Kong: N/A (2022: 7.00%) India: 11.27% to 14.50% (2022: 9.83% to 13.85%) Terminal capitalisation rate: The estimated fair value varies inversely against the terminal capitalisation rate China: 4.25% to 6.25% (2022: 4.25% to 6.25%) Japan: 3.50% to 5.20% (2022: 3.90% to 5.50%) Hong Kong: N/A (2022: 3.00%) India: 7.50% (2022: 7.50%) CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
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